The resounding surge in egg prices in the United States due to the avian flu outbreak is putting a strain on business owners and consumers. The first of these, as raw material costs rise, are finding themselves forced to raise the prices of their products.
The H5N1 virus infected farms across the country last year, killing more than 40 million laying hens, according to the U.S. Department of Agriculture. This is causing the current shortage of eggs.
Wholesale prices of eggs have increased by 186 percent. The costs of baked goods have not yet increased significantly according to the Consumer Price Index, but this may change soon. For this reason, therefore, some baked goods vendors have begun to use alternative products.
Werner Simon, owner of Manhattan Sweets Boutique Bakery on Long Island, for example, told CNN that his bakery is considering using so-called egg substitutes, a product that “contains some yolk and soy and replaces about 5 percent to 10 percent of the eggs.”
Eat Just Inc. which produces several vegetable egg products, on the other hand, has seen demand for such products skyrocket in recent weeks. Sales to various chains such as Walmart, Whole Foods, Kroger and Publix have been five times higher than last year. To meet the surge in demand, the company has been implementing orders for ingredients and packaging materials, as well as scheduling extra production days. While this is affecting profit margins, the company has been able to avoid raising the prices of its products for now.
However, the cost of baked goods could also rise due to other factors that have nothing to do with the shortage of eggs. Many merchants, for example, explained that the price of cocoa has also surged upward. This means that in the near future, it will become increasingly expensive for consumers to buy even the most common products, such as croissants or chocolate dumplings.
Raising prices is usually a difficult decision for companies because it almost always results in the loss of customers. However, with the current situation, there seems to be no alternative
